Rep. Hill wants to expand sales tax holiday

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FILE – In this March 19, 2012, file photo, Rep. Matthew Hill, R-Jonesborough, discusses a bill during a House floor session in Nashville, Tenn. (AP Photo/Erik Schelzig, File)

NASHVILLE, Tenn. (WJHL) — Rep. Matthew Hill (R-Jonesborough) wants to temporarily expand Tennessee’s annual sales tax holiday.

Hill is proposing a temporary sales tax exemption for the purchase of furniture, electronics, clothing, back-to-school supplies, and new and used vehicles during certain dates. There would also be a week-long sales tax holiday for restaurants.

Tennessee’s current sales tax holiday takes place the last weekend in July and applies to most clothing, school supplies, and computers. Under Hill’s proposal, the holiday for back-to-school shopping would be extended for an additional weekend.

“This is an active way we can encourage Tennesseans to support their local family restaurants, local shops, local car dealers, but also a tangible way we can return tax dollars to Tennesseans,” Hill said in a news release Wednesday.

“Our small businesses were hurt by the restrictions placed on them because of the pandemic,” Hill added. “Extending the sales-tax holiday will pay dividends in the long-run by encouraging growth, encourages business and ultimately shows taxpayers we recognize whose money it really is.”

The expanded sales tax holiday would mean $100 million in cuts to the state budget for the 2020-21 fiscal year according to Hill, who is chairman of the Tennessee House Finance, Ways, and Means Appropriate Subcommittee.

This year’s sales tax holiday is scheduled for July 31-August 2.

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